COSCO Shipping-Seacor’s New JV Buys Eight PSVs
- Business & Finance
A newly established company SEACOSCO Offshore LLC has bought eight new platform supply vessels (PSVs) from COSCO Shipping Heavy Industry (Guangdong).
The Marshall Islands-incorporated joint venture company is a product of cooperation between affiliates of COSCO Shipping Group and offshore marine support vessel operator Seacor Marine Holdings.
Six PSVs from the batch are of UT 771WP design (4,400 tons deadweight) and two are of UT 771CD design (3,800 tons deadweight). The entire series has been designed by Rolls-Royce.
As informed, SEACOSCO will take title to seven of the PSVs in 2018 and one in 2019. Thereafter, the shipyard, at its cost, will store the PSVs at their facility for periods ranging from six to 18 months.
In addition, the JV company has contracted Rolls-Royce Marine AS to outfit six of the PSVs with a battery energy storage system designed to reduce fuel consumption and enhance the safety and redundancy of the vessels’ systems. This follows Seacor Marine’s recent order for battery energy storage systems on four large PSVs in Mexico.
“We are confident that we have structured a transaction that meets the needs of the shipyard while also managing the cash outlay from the equity owners. The acquired vessels will modernize our operating fleet and expand our offerings to our customers. Combining a proven and advanced design, best in category accommodations, and the innovative Rolls-Royce battery system, these vessels will be highly marketable across all major offshore energy regions worldwide,” John Gellert, SEACOR Marine’s Chief Executive Officer, commented.
The new company will be funded 30% with equity and 70% with debt financing secured by the PSVs on a non-recourse basis to the equity owners, Seacor informed.
Aggregate total consideration for the eight PSVs, including the battery system, is approximately USD 161.1 million. Seacor Marine’s total cash outlay is approximately USD 22.4 million, with approximately USD 20 million payable in the first quarter of 2018 and the balance due over the next 14 months as vessels and the Rolls Royce battery equipment are delivered.
Seacor Marine will be responsible for full commercial, operational, and technical management of the vessels under a separate management agreement with SEACOSCO.